It’s a scenario that’s becoming all too common in the corporate world. A class action lawsuit gets filed, in this case, against Anheuser-Busch, accusing the company of a host of violations against California’s wage and hour laws. This begs the question, “Why is this garnering attention given that countless such lawsuits are filed on an almost daily basis, with many stretching the truth far beyond its breaking point?”
The focus of many such lawsuits recently seems to be mistakes in the ‘regular rate’ calculations, which could potentially present a target for plaintiffs in wage and hour violation claims. These errors, believed by some to be low-hanging fruit, do provide cause for concern.
Reports suggest that employers often make inadvertent mistakes when determining an employee’s regular rate of pay. These miscalculations can lead to substantial liabilities in the form of compliance issues, lawsuits, and penalties.
This recent lawsuit should serve as a reminder to corporate legal professionals of the importance of absolute accuracy in wage calculations, and the cost of non-compliance in case of any missteps.
Meeting wage and hour regulations includes, but is not limited to, accurate calculation of overtime wages, which are typically based on an employee’s regular rate of pay. Errors in regular rate calculations can easily compound into significant overtime pay discrepancies, leading to claims from employees and potential class action suits.
It’s crucial for corporations to have sturdy, effective systems in place to monitor wage calculations and ensure compliance. Given the heightened risk associated with “regular rate” miscalculations, it’s crucial to ensure that every aspect of wage calculation and payment is as close to error-free as possible. Diligence in wage and hour computations is not just sound business practice but also acts as a shield against potential litigations.